Note 6: Electricity Revenue

GROUP

PARENT

2013
$000

2012
$000

2013
$000

2012
$000

Electricity sales

731,465

729,997

727,215

727,147

Electricity lease revenue

33,690

33,573

-

-

765,155

763,570

727,215

727,147

Electricity lease revenue is revenue recognised in connection with Snowtown Wind Farm Pty Ltd's (a subsidiary of the Company) Power Purchase Agreement to sell 90% of all energy generated by the Snowtown Wind Farm to a significant Australian electricity retailer. This agreement has been deemed as an operating lease of the wind farm under NZ IFRS and all revenue under the contract accounted for as lease revenue. Because of the contract terms, in particular that the volume of energy supplied is variable dependent on the actual generation of the Snowtown Wind Farm, the future minimum payments under the term of the contract, that expires on 31 December 2018, are contingent in nature and therefore not able to be quantified.